Battle of the Cards: Nigerian Banks Reignite Competition with Fintechs as Naira Cards Resume International Transactions

 For the first time in three years, Nigerian banks are back in the global payment game. The resumption of international transactions on naira debit cards is reshaping Nigeria’s digital finance ecosystem — and it’s setting off a new battle between traditional banks and fintech companies.

From July 2022 to January 2023, banks like GTBank, Zenith, UBA, and First Bank suspended international usage on naira cards due to foreign exchange (FX) instability and regulatory constraints. This vacuum gave rise to fintechs offering virtual dollar cards — a lifeline for millions of Nigerians needing to pay for global services like Amazon, Netflix, Spotify, and YouTube.

But now, with the banks reopening international transactions on naira cards, the question is: who will win the battle for Nigeria’s digital wallet?

🔄 What Changed?

Banks have now re-enabled international purchases and ATM withdrawals on naira debit cards. That means Nigerians can once again:

• Withdraw cash from foreign ATMs
  
  
• Shop on international websites
  
  
• Use POS terminals abroad
  
  

But fintech companies aren’t backing down. Providers like Chipper Cash, Cardtonic, BoldSwitch, Eversend, and Geegpay are digging in, offering more flexibility, higher limits, and (in some cases) more favorable FX rates.

🧮 What Will Influence Users’ Decisions?

Nigerians interviewed by TheCable highlighted five major decision-making factors:

1. Spending Limits
   
   
• Bank limits are often more restrictive: GTBank offers $1,000 quarterly, UBA and First Bank provide $1,500 per quarter.
  
  
• In contrast, fintechs like Chipper Cash and Boldswitch allow up to $10,000 monthly.
  
  
2. FX Rates
   
   
• Official Rate: ~₦1,530/$
  
  
• Parallel Market Rate: ~₦1,550/$
  
  
• Fintech Rates:
  
  
• Chipper Cash: ₦1,714/$
  
  
• Eversend: ₦1,619/$
  
  
3. Transaction Charges
   
   
• Fintechs:
  
  
• Geegpay: $0.50 + 0.9% on non-USD payments
  
  
• Eversend: $0.50 flat + 3.5% on euro/pound payments
  
  
• Ufitpay: 1.5% per USD card transaction
  
  
• Banks:
  
  
• GTBank and UBA mainly charge VAT only
  
  
4. Acceptance on Global Platforms
   
   
• Some fintechs face rejection on high-security sites like PayPal, Shopify, or international travel sites.
  
  
• Banks often offer more consistent acceptance — but with a risk of declined transactions due to FX limits.
  
  
5. User Experience and Speed
   
   
• Fintechs offer faster onboarding, app-based transactions, and live customer service
  
  
• Banks lag in ease-of-use and often have longer customer service delays
  
  

🗣️ What Nigerians Are Saying

Geoffrey Nwankpa, a heavy user of fintech cards, said:

“I may switch if banks offer better rates and higher limits. I’m tired of paying maintenance and sending $100 only to get $98.5”

🏦 Bank vs Fintech: Breakdown of Limits

Provider	Monthly/Quarterly Limit
GTBank	$1,000/Quarterly
UBA	$1,000/Monthly
First Bank	$1,500/Quarterly
Chipper Cash	$10,000/Monthly
Eversend	$10,000/Monthly
Geegpay	$5,000/Monthly
Ufitpay	$2,000/Monthly
BoldSwitch	$10,000 Max per Transaction

💰 Hidden Charges and FX Realities

Most virtual card providers operate on the parallel FX market. While they offer convenience, users often end up losing value:

• FX spread between buying and selling USD is often ₦200–₦300
  
  
• Monthly card maintenance fees (up to $1)
  
  
• Receiving or sending USDT also incurs charges, unlike bank accounts
  
  

Banks, on the other hand, operate primarily on the official FX rate but can restrict user spending due to regulatory compliance.

🧠 Fintechs Respond: “We’re Not Backing Down”

BoldSwitch, one of the fastest-growing platforms, told Civic Vibe NG:

“Our edge remains clear — higher limits, less friction, and access to platforms banks still can’t match. The naira card revival is good for consumers, but we’re building digital finance ecosystems banks don’t offer.”

They highlighted their AI-based user features, in-store business tools, and creator-focused payment solutions as areas where traditional banks are still lagging.

Cardtonic echoed the sentiment, stating:

“We believe every Nigerian should be able to shop globally without restriction. Whether it’s banks or fintechs, it’s the people who should win.”

🧩 Analyst Insights: Coexistence or Clash?

Ayokunle Olubunmi, Head of Financial Ratings at Agusto & Co., believes that while fintechs may experience a temporary dip, their model offers resilience.

“Banks don’t have the same flexibility fintechs have. Even if international naira card limits are back, they are nowhere near what users need.”

He predicts that partnerships, not battles, will define the future.

Charles Abuede, a research analyst, agrees, saying:

“This policy may help boost FX inflows from remittances and build confidence in Nigeria’s payment system. But the market still has room for multiple players.”

🔍 Final Thoughts: What Should You Do?

Whether you’re a freelancer in Lagos, an online shopper in Ibadan, or a remote worker in the UK, the return of naira card international transactions gives you options.

• If you prioritize high limits and flexibility → fintech may still be your best bet
  
  
• If you want official FX rates and less hidden fees → banks could now be viable
  
  
• If you’re building for the international marketplace → consider using both strategically
  
  

The digital finance war is far from over — and the biggest winner could be you, the user.

Photo Credit:Vagaro/ Unsplash 

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